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Job cuts loom on high power bills, MPs told

Kenya is staring at huge job cuts due to increased cost of production occasioned by high electricity costs.

Workers’ lobby groups and employers have told the Energy Committee of the National Assembly that companies have been forced to shelve their expansion and hiring plans, while others have been forced to reorganize their workforce.

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The committee is probing the high cost of energy in the country that threatens Kenya’s investment climate.

The cost of power continues to soar despite many efforts to lower the cost of the commodity through policy and investment interventions.

The cost of the commodity has been affected by expensive fuel, a weakening shilling, and the removal of energy subsidies early this year.

Thursday, representatives from the Central Organization Trade Union (COTU), Kenya Medical Association among other professional bodies the committee that, the high cost of electricity threatens Kenya’s job market.

The trade bodies have said lack of transparency in Power Purchase Agreements is hurting Kenyan businesses.

KMA says the strain on hospital operations due to unstable electricity supply was leading to equipment breakdowns recommending subsidies and incentives for health institutions.

The committee chair revealed it has written to the registrar seeking to establish the actual ownership of IPPs after efforts to unmask ownership proved futile.

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